High-flying luxury jet travel startup Aero Technologies Inc. has raised $65 million in additional funding to meet core service demand and expand into new markets, the San Francisco startup said Thursday.
The new capital — $50 million in Series B and $15 million in convertible notes — brings the company's total fundraising to $101 million since it emerged from Uber co-founder Garrett Camp's startup accelerator Expa in 2019. The round was led by prominent European alternative investment firm Albacore Capital Group. Returning investors Expa and Keyframe Capital pitched in along with new investor Capital One Ventures.
The Series B will allow Aero to increase capacity on its core routes with the acquisition of two additional aircraft this year, CEO Uma Subramanian said in an email. New routes are on the horizon in the next few months, but the CEO declined to say where, other than to note they won't be out of the Bay Area, at least in the next six months.
Subramanian said Aero now has a post-money valuation of $300 million and that bookings this year are on track for 300% year-over-year growth. The company has found "a clear product market fit" in its core San Francisco, Los Angeles and London hubs, she added.
"In times of tightening capital markets, nothing sells as effectively as a viable business," the CEO said.
Airport chaos around the world — widespread delays resulting from overstretched flight crews and burgeoning revenge travel demand — stands to strengthen Aero's argument for the appeals of "semi-private" air travel, replete with white glove concierge service, fewer lines and posh plane interiors. Because passengers are served from private terminals, the CEO said they haven't been subjected to the same bottlenecks as other commercial carriers.
Subramanian said staff burnout has been limited because it offers flight and ground crew "better work-life balance" compared with other carriers. Aero also specializes in shorter flights — where the company sees more market opportunity — compared with the coast-to-coast routes from competitors like JetBlue Mint.
The perks of bespoke jet travel don't come cheap, of course. As of this week, the next available Aero flight from San Francisco to Los Cabos, Mexico, is in late October and runs a cool $2,300 one-way for the three-hour trip.
Aero's current Bay Area service out of San Francisco International Airport launched six months back and serves two destinations — ski haven Aspen, Colorado, and Los Cabos (via San José del Cabo International Airport, about 29 miles from the summer tourist playground of Cabo San Lucas).
Aero also offers flights to those destinations and Sun Valley, Idaho, from Van Nuys Airport in Los Angeles. Its European service reaches Ibiza (Spain), Mykonos (Greece) and Nice (France) from London's Farnborough Airport.
